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IS IT CHEAPER TO BUY OR BUILD A HOUSE IN THE ALGARVE, PORTUGAL?

 

Many of our clients ask us if it’s a better option to buy a house in the Algarve or to build one, so we try to give you an approximate based on our past and current sales experiences, for example, because accurate figures depend on thousands of factors to discuss:

For instance, a 1000m2 building plot with approximately 200m2 build permit in Lagos with views and good location will cost 350 thousand to 500 thousand euros, price per square meter will be 1.600m2 to 2.000m2 if you want good quality. So that’s in the best case 670 thousand to 900 thousand for the construction, plus 10 to 20 thousand kitchens, 30 thousand for landscaping, furniture not going to mention because it can cost from 30 thousand to 100 thousand depending on brands and level of equipment fitted into the house. So, in the more expensive scenario, we are close to 1.1 million euros.

However, here we still have to add all the fees which come along with the build process of the house, architect fees, licenses, project management, insurances, geological studies, permits & taxes, and probably a few more along the process. Roughly that will sum up to 150 thousand, so we are at a total build cost of 1.25 million euro. And not to forget that time also plays a significant factor from purchasing the plot until moving into the house. It usually will take 18 to 24 months, and you´ve got lots of other steps, and every single one of them involves serious time! 

Most of our clients prefer to purchase an already built house that is a bit more expensive but prefer not to have the hassle and stress that building a house from scratch will bring. Still, on the other hand, it´s also very gratifying seeing a project you envisioned and planned on becoming a reality day after day and make you appreciate it more in the end. And this house described with the location and built size in the current market would have a realistic selling price of just around 2 million. It is probably listed at a higher price in today’s market.

At the moment, there are still plots to build with building permission already granted or already under construction. So that´s excellent news for anybody searching for a new modern house, still with the possibility to add personal touches.

On another note, did you know that ruins dating back to 1951 can be rebuilt even if they are located in protected areas? So, your next neighbor is very far away. Which, no matter how friendly they are, is always great!

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Sergey Malinka
Sergey Malinka Property Consultant